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    The Role of Strategic Sourcing on Organization’s Performance: A Case Study of Jomo Kenyatta University of Agriculture and Technology

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    Date
    2015-05
    Author
    Kihanya, Titus Wachira
    Wafula, Moses Kimani
    Onditi, Evans Ojiambo
    Munene, Ambrose Muriithi
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    Abstract
    Strategic sourcing is growing at a rapid rate throughout the world because organizations view it as a way to achieve strategic goals, improve customer satisfaction and provide efficiency and effectiveness services. This study was guided by the following objectives: to determine the role of quality of goods and services on organization’s performance; to establish the role of cost of goods and service; to establish the role of supplier relationship; the role of timely delivery of goods and services and to determine the role of effective procurement plans on organizational performance.Descriptive research design was used in conducting this study. The target population for the study were the employees of Jomo Kenyatta University of Agriculture and Technology, Main Campus. A sample size of 89 employees, with stratum of top level management, middle level management, first line management and low level management was selected from the various departments. Questionnaires were used to collect data. Data was analyzed using SPSS. To test the validity of the research instruments, the researcher sought expert’s opinion and reliability was done to a few employees who were not included in the final study. The study findings were interpreted and discussed. The findings were presented using frequency distribution tables and charts to clearly show the response from the respondents. The findings of this study suggested that strategic sourcing enables the organization to achieve strategic advantage and at the same time act as a means in which a business condition or problem can be alleviated in a more efficient and effective manner. Although strategic sourcing is essential to the university, the respondents indicated that quality of goods and services was the most highly rated variable followed by cost of goods and services, timely delivery of supplies, effective procurement plan and lastly supplier relationship in that order. The performance of strategic sourcing was indicated as being affected by poor planning, failure to adhere to procurement plans and inadequate funding. It was concluded that quality goods and services plays a very major role in determining the organization performance due to its high rating by the respondents. It was also concluded that the cost of goods and services affects its competitiveness. The study finally recommended that the university should maximize on its human capital as its most priced asset, should have a formal strategic sourcing, it should also put all measures in place to ensure that they do not face severe losses as a result of poor supplier relationship and finally the management should ensure that respective departments should prepare well planned budget and operate within the budget and funds allocated.
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    http://repository.mut.ac.ke:8080/xmlui/handle/123456789/6832
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